What You Can Achieve Through Crowdfunding in Japan

Expanding a customer community, launching a product for a lower price, customers themselves supporting the project, etc. Crowdfunding has so many advantages that it would be hard to list them all, so today we will focus on why it is a good opportunity to seize, why it is gaining in popularity in the world and in Japan, and what kinds of product are successful in 2020.

We listed projects which raised the most fund at the end of this article, check it out!

What Is the Crowdfunding?

Crowdfunding, as indicated in its designation, is the idea that the “crowd” participates in raising “fund” for a project. Investopedia defined it as “the use of small amounts of capital from a large number of individuals (called backers) to finance a new business venture”. Through social media and specialized websites, an individual can raise funds and launch its product(s) at a low cost. There are three types of crowdfunding, namely donation, purchase and investment, with subcategories called equity-, loan- and association-based crowdfunding.

This concept started in Japan with the READYFOR? platform, launched in 2012. Even if the number of campaigns grows at a slower pace than in the United States, it becomes more and more popular, with many successful campaigns.

Why Is Crowdfunding a Good Opportunity?

Because it is an occasion to launch a product without asking for regular lender support

Because it is a huge and growing marketplace, not only in Japan

Because you are supported by a community and can build your network faster

Because you can improve a product thanks to feedback

It has advantages both for the customer and the entrepreneur, for example:

Customers

Entrepreneurs

Can contribute to the project they like, to new, exciting and innovative products

Can be creative and reach the customer directly, have feedback

Pre-order the product before the majority knows about it

Have customers before selling the product, generate publicity

Product at a lower price, low investment, low risk

Launch the product at a lower price, with less risk (charged only if the target is reached)

Statistics

To understand better the characteristics of crowdfunding in Japan, here are some 2019 statistics collected by Statista.

“Total Transaction Value in the Crowdfunding segment amounts to US$16.7m [€14.8m] in 2020.”

“In the Crowdfunding segment, the number of funding campaigns is expected to amount to 7.0 thousand by 2023.”

“The average funding per campaign in the Crowdfunding segment amounts to US$2,935 [€2,599] in 2020.”

“With a total transaction value of US$7,049m [€6,243m] in 2020, the highest value worldwide is reached in China.”

Three Famous Platforms in Japan

You can use big international platforms (like Indiegogo, Kickstarter, Gofundme, etc.), but it is better to choose a Japanese one. The three main platforms below are a good bet when targeting the Japanese market.

Green Funding

The Green Funding team displays patience when investing in projects and wants to attract determined entrepreneurs who are willing to be creative and to disrupt a field or an industry. They chose to invest in seed stage, they take risk but they also take the campaign success very seriously. Besides financing projects, they provide marketing support for a great variety of products (gadgets, food, CDs and DVDs, books, sports or social contributions).

The average amount of support is 3.4 million yen, the highest level in the industry. They are however less concerned by the amount of funding, which is one of the reasons why they became the number one in success rate, and an excellent platform for crowdfunding.

Makuake

Be aware that Makuake is made specifically for Japanese company and that it is not a good choice to start with (you have to list your products and concepts in the campaign).

Campfire

The Campfire platform is ready to support creative entrepreneurs to enter the Japanese market. The concept is to raise the funds necessary for 10,000 yen only via the Internet, for creative projects such as music, books, art, movies or products.

Top 25 of the Most Funded Campaign on Japanese Websites (2020)

Remember that even if there are many advantages to crowdfunding, many projects failed. If you are curious to know what kinds of product are successful in Japan, check the top 25 below! And if you want to be helped, let us know. Whether you need a strategy or assistance with your new innovative product, we provide value for your new product launch in the Japanese Market. We offer Crowdfunding Support and Digital Marketing Services, all under one roof. You can contact us at www.gloture.co.jp!

No.9

Details: Can be carried like a tablet or a smartphone but with the performance of a desktop PC if a monitor is connected. 8GB memory / 128 GB internal storage, design, copper heat pipe, 480 g, LAN2.4/5 GHz, Bluetooth 4.1, USB Type-C, HDMI Type D (micro-cable).

Goal: 5,000,000JPY

Amount raised: 97,191,360JPY

Backers: 1,478

Platform: Makuake

No.10

Creator: JDSound (Japan)

Description: A portable speaker that perfectly reproduces the excitement of a movie theater. Made in TOHOKU “OVO”

Details: Powerful sound, allows a complete immersion.

Goal: 20,000,000JPY

Amount raised: 94,885,800JPY

Backers: 7,527

Platform: Green Funding

No.11

Creator: Crazybaby (USA)

Description: Full orchestra in a small body. Full wireless earphones with Hi-Fi sound Air

Details: “Air by crazybaby” is completely wireless earphones with Hi-Fi sound featuring a diaphragm and high-resolution sound which can be purchased from the 10,000JPY range. A sound which is “faithful to the original sound”.

No.13

Creator: Hayama-Colony inc. (Japan)

Description: Anyone at home can cook like a professional! Evolved Low-temperature Cooker BONIQ Pro

Details: Inspired by French cooking technique used in starred restaurants around the world for more than 30 years: immersing a zip bag containing ingredients in hot water and cooking at a precise temperature. Determines the texture.

Goal: 1,000,000JPY

Amount raised: 84,498,000JPY

Backers: 2,790

Platform: Makuake

No.14

Details: “popIn Aladdin” is a projector and speakers incorporated in a ceiling light. Enjoy your favorite video and music in a relaxing bedroom with the projection of a large bright screen and with high-quality speakers. Install “popIn Aladdin” on the ceiling easily, and watch AbemaTV or YouTube in your bed.

No.24

Creator: Shonen Hollywood

Description: TV Anime “Shonen Hollywood” 26, complete version!

Details: Will continue the TV animation “Holly Stage for…”. The dance scene, all hand-drawn, is a live performance that is unique in the history of anime. List of all the songs performed by Shonen Hollywood on Christmas Eve, and more.

No. 25

Details: Can be worn without worrying about stains (easy to remove with water). Ultra-high-quality movements.

Goal: 100,000JPY

Amount raised: 58,922,300JPY

Backers: 1,613

Platform: Makuake

Conclusion

Crowdfunding is a good opportunity to launch a project without having to struggle to find a lender. And with our top 25, you can notice the Japanese trends, like high-tech products (power supplies, laptops, smartphones) which are more convenient, more powerful, smaller, lighter, etc. Products which are wireless but still perform very well (speakers, video projectors) and which help people save time (earphones, electric toothbrushes) are very popular, like objects which solve issues of the everyday life (warm clothes or night vision system). Other successful projects are characteristic of the Japanese culture (animations and figures).

If your product is similar to those, why not try?

And if you want launch your crowdfunding campaign in Japan, you can contact us at www.gloture.co.jp!!

Who are we?

We are a creative agency giving you a solid market fit.

Our well equipped, talented and dedicated marketing team through crowdfunding provides you with full an option that brings your Kickstarter and Indiegogo products to the front line in the Japanese market.

Our Mission

To empower entrepreneurs from around the world, help them deliver their stories about the products that they are so passionate about — to the hands of Japanese consumers and get them all excited.

Our Vision

To make a borderless world without jet lag

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